1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
morpeh [17]
3 years ago
7

3. A worker within the middle income class is preparing to retire. In the year before he retired, his gross monthly earnings are

$2,000. His Social Security benefits will be $1,200 per month. Before he retired, his income was subject to a tax of 25 percent. Find his before-tax and after-tax replacement rates
Business
1 answer:
snow_tiger [21]3 years ago
7 0

Answer:

The replacement rate is the percentage of the final income that the pension compensates.

Before-tax replacement rate:

The worker made $2,000, and his social security benefits are $1,200.

1,200 x 100% / 2,000 = 60%

The before-tax replacement rate is 60%.

After-tax replacement rate:

His 2,000 income was subject to a 25% tax.

2,000 x 25% = 500

His after-tax income was 1,500

1,200 x 100% / 1,500 = 80%

The after-tax replacement rate is 80%.

You might be interested in
A person invested $20,000 into two accounts that pays 2.5% and 3% simple interest annually, respectively. find the amount invest
denpristay [2]
Let:
x = amount in the account invested in 2.5%
20000 - x = amount in the account invested in 3%

Solution:
.025x + .03 (20000 - x) = 540
.025x + 600 - .03x = 540
-.005x + 600 = 540
-.005x = 540 - 600
-.005x = -60
x = 12000

Therefore, that person invests 12,000 at 2.5%
and
20,000 - 12,000 = 8,000 at 3%
8 0
3 years ago
Read 2 more answers
Suppose the inflation rate is 2% per year. If you currently think of $40,000 as an acceptable retirement income and are expectin
Svetllana [295]
40,000x(1.02^40)=$88,322
3 0
3 years ago
To overcome possible problems with budgets that are developed only by top level managers, an alternative is to use: A. Mandatory
Dafna11 [192]

Answer:

Paticipative budgets

Explanation:

A budget can be defined as a financial plan which gives an estimate of income and expenditures. A budget is a tool that is utilized by different organisations to manage their resources inorder to achieve their various objectives and goals.

A budget shows the different costs incurred by the organisation within a particular period of time.

Participative budgets is a type of budget in which the low level management of an organization are involved in the preparation of budget. It helps to prevent top managers from unruly behaviours.

Participative budget enables the top level and low level managers to share information that will lead to the growth of the organisation.

8 0
3 years ago
If an agent injures a third party during the course of employment, to what extent should the employer be held liable? Under what
postnew [5]

Answer:

The employer will be held liable.

Explanation:

If the external agent brings harm or injury to a third party in the course of an employment, the employer is held liable. When a principal directs an agent to commit for a tort or if the principal is aware of the consequences of carrying the instructions of the agent could cause harm or injure the person, then the principal is liable.

It is called direct liability.

The liability for the intentional tort which is imputed to the principal when the agent acts to further the business of the principal.

The agent is personally liable under the following circumstances :

  •   Foreign principal
  • Agent signs the contract in his own name
  • Non-existent principal
  •  Principal cannot be sued:
  • Undisclosed principal

Example :

A credit card company hires a sales person and offers a company van to make sales in that area. The sales person uses the office van to official purposes. But one night, he drove the car to a friend's party and while coming he drove over a pedestrian. In this case, the owner of the company will not be held liable as the sales person uses the company van for his personal use while going out for party with his friends. While causing the accident, the sales person was not not using the office van for official purposes and was not tendering official duties at that time.

3 0
3 years ago
What is a cash book used for?​
Alinara [238K]

Answer:

to keep track of all business transactions in case of an audit

8 0
3 years ago
Read 2 more answers
Other questions:
  • True or false: if jacques's fire engines were a competitive firm instead and $160,000 were the market price for an engine, incre
    12·1 answer
  • What is the maximum pre-tax deduction amount for a dependent-care flex account?
    9·1 answer
  • Paladin Furnishings generated $2 million in sales during 2016, and its year-end total assets were $1.7 million. Also, at year-en
    15·1 answer
  • Riverbed Corporation had the following activities in 2020. 1. Sale of land $186,000 4. Purchase of equipment $428,000 2. Purchas
    13·1 answer
  • Providers cannot maintain inventories of their services, leading them to vary prices according to demand. For example, most hote
    6·1 answer
  • Suzette has received an order for 1,500 boxes of nuts per week for the next 3 months. If she expects the trend in the marginal p
    12·1 answer
  • Select an organization and identify and evaluate the components of its Strategic Plan (i.e., Vision, Mission, Values, Core Compe
    7·1 answer
  • Some say the office culture today has become "too nice" Which statement would
    12·1 answer
  • Match each entity on the left to the correct establishment on the right.
    8·1 answer
  • An economy has a monetary base of 1,000 $1 bills. calculate the money supply in scenarios a - d. then answer part e.
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!